IFC, FEI Provide $80m To Expand Clean Energy Access For African Industrial Businesses

By Faridat Salifu

The International Finance Corporation (IFC) is partnering with the Facility for Energy Inclusion (FEI) to provide $80 million in financing for the production of renewable energy for Africa’s commercial and industrial (C&I) customers.

Of the $80 million funding, $30 million will be in the form of an IFC loan, while $20 million will be part of the Co-financing Portfolio Management Programme (CPMP), leveraging $30 million of blended finance.

Additionally, there will be a further $15 million from the International Development Association’s (IDA) private sector window blending facility, and $15 million from Finland’s and the IFC’s blended climate finance programme.

According to the Head of Debt Funds at Cygnum Capital Asset Management, Orli Arav, which manages the FEI, the financing from IFC marks an important milestone for the FEI.

The fund has garnered $220 million in commitments in 23 countries so far, establishing itself as a leading lender in the decentralised renewable energy market in Africa.

The financing is set to expand production capacity by approximately 115 MW across fifteen African countries, including the Democratic Republic of Congo (DRC), Ghana, and Kenya.

The EIF focuses on financing small-scale renewable energy production and storage projects to supply commercial and industrial (C&I) companies, telecommunications infrastructures, and solar mini-grids across various African nations.

In addition, the financing facility previously signed a $20 million line of credit for CrossBoundary Energy (CBE) in November 2023.

This funding, as part of a $50 million facility provided by Standard Bank, will support the production of solar energy to power businesses in sub-Saharan Africa.